A new real estate blockchain is set to offer niche buyers fractionalised real estate.
A new company plans to utilise blockchain technology to capitalise on the investor market, particularly by offering fractionalised real estate.
CastleCoin, which is currently in the development stage, will provide investors with a platform that will offer the complete package.
CEO James Lynch said that CastleCoin will assist investors in the conventional real estate process by becoming a one-stop shop.
“What we can do is serve a purpose for record-keeping, tracking transactions, order stability, things like that. It presents a great deal of opportunity,” Mr Lynch said.
CastleCoin is currently building towards offering investors the opportunity to buy into fractionalised real estate, the CEO said.
“The other thing that we are able to do is fractionalisation of real estate as well. We are looking at tokenising real estate assets or those fractions of real estate,” Mr Lynch said.
Mr Lynch said that the assets would be broken down into digital tokens which could then be purchased by investors.
“We have what we call ERC721 tokens, [which] represent each individual real estate asset. Then we have ERC20 tokens, [which] represent portions of the ERC721 token.
Mr Lynch said that the ERC721 tokens would allow investors to purchase part of the real estate asset as opposed to buying the whole asset.
He said that by doing this, more people could become investors in the property market and would allow the market to move quicker.
“Our goal with this is to improve the liquidity of the real estate market and shorten the time of acquiring a real estate asset.”
Mr Lynch said that CastleCoin was focused on flexibility for investors and allowed them to choose how they can purchase.
“The platform will support Australian dollars as people still like to use that, but also cryptocurrency. There’s that flexibility. If people want to purchase a house or fraction of a house in crypto, they can, or if they’d like to do that in cash, they can do that, too,” the CEO said.
Mr Lynch said that the advantage of using CastleCoin were the tokens, which represent contracts, obligations and ownership.
“The other advantage is that, if you do any renovations, you can commit the information about the supplier and the fitting. If you go on and sell that house, the next owners will be able to see all that information,” Mr Lynch said.
Mr Lynch said that CastleCoin’s whole premise was to make real estate accessible and easy for everyone.
“One of our goals is to make real estate as accessible and readily available to everybody that we possibly can,” the CEO said.